Luxottica Q1 like-for-like sales drop

The figures were matched against the 1.6% rise for the January–March period last year and 0.5% increase in the last quarter of 2016. However, overall Q1 sales at constant currencies rose by 1.9%, which was in line with the company’s expectations.The overall sales rise was due to growth seen in Latin America and Europe, however, it was largely offset by weaker consumer spending in the US.{{quote-A:R-W:450-Q: The revenue drop for the giant eyewear maker started when it implented a policy to cut down online discounts. }}North America sales dropped by 2.5% at constant currencies, but were countered by a significant rise in Europe by 17.4% and 5.5% increase in Latin America.The revenue drop for the giant eyewear maker started when it implented a policy to cut down online discounts for its top-selling brand RayBan and severed ties with some independent distributors in China.While wholesale revenue was flat for Q1, overall retail sales went up by 3.3% at constant currencies to euro 1.4 billion (AU$2.06 b).Chief financial officer Mr Stefano Grossi pointed out that the impact on first-quarter revenues was smaller than initially expected and the company is expecting like-for-like sales will improve throughout the year.The company’s performance for Q1 this year was opposite to that of Essilor, which posted a 7% increase in revenues net of currency movents. Both companies are in the process of completing a proposed merger by the end of this year, after it was cleared by antitrust authorities.